Written by Roscoe High, SIOR, and Reprinted with Permission From Nashville Business Journal.
A decade ago, Nashville was at the inception of what has become a phenomenal national story of growth for this bustling Sunbelt city. Today, Music City USA has become a shining example of growth, development, investor activity, company relocations, and population growth, all of which continue to drive the success of the market. Data from the Bureau of Labor and Statistics reveals that as of March 2021, Nashville has recovered 75% of jobs lost in March and April 2020, with professional and business services jobs having regained 108% of the positions lost last year. But this recovery hasn’t happened by accident and the reasons behind this tremendous success show no signs of slowing.
Both institutional and private commercial real estate investors continue to deploy capital. For example, one global tech giant recently announced a $1.2 billion investment in Nashville, bringing in roughly 8,500 new jobs, and they are just one example of exceptional job growth. Luckily, with 13 regional universities and 37% of the population holding a bachelor’s degree or higher, Nashville is fortunate to have an outstanding labor pool to support the future workforce needs of a flourishing economy. To compliment the native workforce, thousands of people are flocking to Nashville each year. In 2020, Tennessee ranked No.1 on U-Haul’s 2020 Migration Trends report, recording the highest number of Americans moving here from out-of-state, many from the west coast and northeastern cities. In fact, a CBRE Research analysis has shown that an average of 91 people move here every day.
The city has taken calculated steps to ensure it can sustain this meteoric rise. One major example being the $1.4 billion expansion of Nashville International Airport (BNA) which will allow more direct domestic and international flights, broadening Nashville's reach and global accessibility.
Perhaps not surprisingly, this growth is creating outstanding opportunities in commercial real estate. Society of Industrial and Office Realtors (SIOR) recently shared its Snapshot Sentiment Report of members, revealing market confidence at its highest rate in over a year, and leasing activity exceeding pre-pandemic levels. This is excellent news for Nashville, where businesses have the ability to reach 75% of the U.S. market within a two-hour flight, making the city ideally suited to meet increased logistics and shipping needs. Couple this with no state income tax and one of the nation’s most business-friendly environments, and the economy shows no signs of slowing down.
Connecting with a commercial real estate expert who is also a SIOR member is critical not only for businesses looking to relocate into Nashville, but also for existing members of the local business community who wish to expand or find new space. The connections and access provided through an SIOR are critical in a growing and competitive market like Nashville. CBRE is the worldwide leader in real estate services and employs many SIOR-designated professionals who can help businesses expand across the nation or world.
The past 10 years have been remarkable for Nashville. With the local economy steadily recovering, companies continuing to relocate, investors regularly deploying capital, and nearly 100 people making Nashville their home daily, the next decade looks even brighter.
This article originally appeared in the Nashville Business Journal.